THE ROLE OF KNOWLEDGE MANAGEMENT AND INNOVATION CAPABILITY AS MEDIATION: EVIDENCE YOUNG ENTREPRENEUR IN MALANG, INDONESIA

Abstract

The purpose of this research is to analyze the direct relationship between entrepreneur orientation, knowledge management, innovation capability, and firm performance. This study examines the mediating role of knowledge management and innovation capability in the relationship between entrepreneur orientation and firm performance. This research is included in the quantitative research with an explanatory approach conducted on young entrepreneurs in Malang City. Sampling research using the purposive sampling method with a sample size calculator as a method of determining the number of samples. Data collection was carried out online via the Google form for 1 month on 385 young entrepreneurs in the city of Malang. Data analysis in this study used SEM-PLS assisted by SmartPLS 3.3.3 software. The results of the study show that there is a direct relationship between entrepreneur orientation, knowledge management, innovation capability, and firm performance. Not only that, knowledge management and innovation capability also play a role as a mediator in the relationship between entrepreneur orientation and firm performance. The results of this study indicate that knowledge management and innovation capability can be essential catalyst for young entrepreneurs in improving their business performance